The development of technology is now changing the way business owners operate their companies. With data collection software, companies can gather incredible amounts of data quickly. However, many small business owners don’t know how to make full use of this data to grow their business. According to a report from Forbes, 95% of companies face some need to manage unstructured data. In this article, we’d like to share with business owners how to use data analysis methods to improve business performance.
Improve Customer Targeting
Data analysis can help companies segment their customers well. Companies can do segmentation analysis or cluster analysis using data analysis tools such as Python. It enables them to understand the pattern of different customer groups. Business owners will be able to customize their products according to each group’s needs. It is a very effective way to increase product sales.
Moreover, data analysis also allows companies to improve marketing strategy. After knowing customers well, companies will be able to figure out which channel and what form of advertising can reach most of their target audience. In this way, the marketing cost can be reduced.
Improve Website Layout
Website design is essential for every company. A practical web page layout can increase customer conversion. Companies can do A/B testing for many parts of a website. For example, product image, pop-up ads, and subject line design are all things that can be tested. After running a test, business owners can collect large amounts of data for each design. Then they can analyze the data to get the number of important metrics such as add to cart rate and repeat purchase rate. Comparing the metrics between different designs, companies will know which design leads to a better conversion rate. After that, they can make the necessary changes to their web page layout.
Improve Supply Chain
An inefficient supply chain not only leads to unnecessary costs but also causes the company to miss opportunities for business. Data analysis can help business owners improve the operation of their supply chain. Based on historical data, companies can develop predictions on customers’ future needs. It allows companies to know how many products they need to prepare to satisfy customers’ demands on time.
In addition, there is also software that provides real-time data reporting. Companies can use them to check the inventory at any time, so they can have a better plan for product storage. Real-time data computing can also provide companies the best delivery route to allow a company to have the lowest possible transportation costs.